International Electronics Retailer’s Distribution & Repair Centers Increases Labor Productivity in Their Supply Chain by 15%

Situation

A Fort Worth, Texas-based multi-billion retailer’s distribution and repair operations needed to do something fast to improve their bottom-line results. They selected MetaOps, Inc. to provide a team of 4 MetaExperts® to help them with the introduction and adoption of Lean Six Sigma methods throughout the supply chain. The MetaExperts® assigned lead the organization to improving productivity by 15%, affecting more than 2,000 employees in more than 20 sites across the U.S. resulting in several million dollars in bottom-line impact.

Actions

The company’s SVP of Supply Chain credited MetaExpert-lead Operational Excellence transformation with:

  • Leading the development of a site ‘steering committee’ of key stakeholders at all locations.
  • Training teams to drive improvement efforts using Operational Excellence methods.
  • Developing and implementing a customized approach to engage the workforce in ‘quick-hit’ Kaizen workshops using a ‘learn-by-doing’ approach.
  • Lead teams to implement rapid improvements over 12 key areas over a 5-month period of time.

Results

The company’s transformation reduced their costs by millions and:

  • Productivity increased 15% across the supply chain
  • Error rates on orders were reduced by 30%
  • Order delay times were reduced by 50%

Return on Investment

  • More than $6,000,000 in recurring savings – cost per transaction
  • 15% overall productivity increase affecting 2,000 employees
  • 28% reduction in labor costs in pick operations
  • 30% reduction in errors reported
  • 50% reduction in order delays

Project Details

Client Skills Required: Lean Six Sigma and OpEx understanding and deployment, SOP (standard operating procedures) improvement, continued process improvement, leadership and training in the practice of High-Performing Teams

Contract Length: 180 days

Support by MetaOps, Inc. MetaExperts®: LSS and OpEx training, mentoring, coaching and implementation, and High-Performing Teams development, Kaizen workshops, Quick Hit change innovation and implementation